Digital Realty, a US-based real estate investment trust (REIT) that owns, operates and develops data centers and other digital infrastructure, acquired a further 16 percent stake in Teraco, an African carrier and cloud-neutral data center provider, after the close of its third quarter.
According to its latest quarterly report, Digital Realty acquired the stake from certain minority shareholders for approximately US$ 688 million. The company said it paid principally through the issuance of 3.4 million shares of common stock, taking its ownership of Teraco from 61 percent to approximately 77 percent. Teraco currently operates eight data center locations in South Africa with the bulk of its operations in Johannesburg.
Elsewhere in its quarterly report, Digital Realty recorded total bookings of US$ 855 million in annualized GAAP base rent, including its joint venture partners’ portion. The firm’s own share amounted to US$ 627 million across 184.8 MW.
While the company is making moves in Africa, Asia Pacific was its strongest region for bookings, at US$ 283 million and 79.7 MW. The Americas followed closely behind with US$ 243 million and 75.6 MW, while EMEA contributed US$ 78 million and 29.5 MW.
“These results underscore the global strength of customer demand for connectivity-rich environments, trusted execution, and a well-capitalized partner with the reach and capabilities to support their evolving requirements across the digital infrastructure landscape,” said Andy Power, Digital Realty President and Chief Executive Officer.
Revenue for the quarter came in at US$ 1.9 billion, up 21 percent year over year, with net income coming in at US$ 194 million. The backlog of signed-but-not-commenced leases climbed to a record US$ 2.5 billion, including joint venture partners’ portion. Digital Realty also signed renewal leases representing US$ 261 million in annualized cash rental revenue during the quarter. Rental rates on renewal leases increased 11.8 percent on a cash basis and 17 percent on a GAAP basis.